According to informed sources, Space Exploration Technologies Corp (SPCX) has notified its underwriters that it intends to maintain its proposed initial public offering price of $135 per share. This price will be set without a range or any downward adjustment, indicating the company's satisfaction with investor demand during its roadshow.

The planned pricing is expected to raise approximately $75 billion, positioning this offering as potentially the largest IPO in history and valuing the Elon Musk-led company at around $1.77 trillion. If underwriters fully exercise their over-allotment option, the total fundraising could reach $86.2 billion, surpassing Saudi Aramco's 2019 record of $29.4 billion to become the largest public offering globally. The shares are expected to be issued on June 11 and begin trading on June 12 on the Nasdaq Global Select Market and the Nasdaq Texas Exchange under the ticker "SPCX".

This decision is notable as companies typically use investor meetings during roadshows to gauge market interest before finalizing pricing. Although sources caution the price could still change before trading begins, SpaceX's current stance suggests management sees no need to adjust terms despite the unprecedented scale of the deal. This pricing confidence stems from exceptionally strong investor demand, with institutional inquiries reportedly far exceeding typical levels for large IPOs.

The robust market reaction underscores Wall Street's keen interest in investing in one of the world's most valuable private companies. SpaceX's leadership in commercial launches, satellite communications via Starlink, and its growing role in national security missions make this IPO one of the most anticipated market debuts in recent years.



Unconventional Pricing Strategy: A Show of Absolute Confidence

In the U.S. market, the standard process for a major IPO involves announcing a price range, conducting a weeks-long roadshow to gather feedback, and then setting a final price within that range based on subscription levels. This mechanism is based on price discovery—letting the market determine value. SpaceX has chosen a different path, directly locking in $135 with no range or dynamic adjustment, a strategy rare in U.S. markets but more common in Asia and Europe.

"This goes beyond 'arrogance'," a Wall Street banker involved in the IPO described to media. "It's an attitude of 'take it or leave it.' SpaceX is telling the market: we don't need your price suggestions, we know what we're worth."

The viability of this "fixed price" strategy is rooted in a severe supply-demand imbalance. Reports indicate SpaceX plans to allocate up to 30% of the IPO shares to retail investors, representing a staggering $22.5 billion in retail subscriptions. This figure is more than double the net retail purchases of Tesla stock over the past year and exceeds total retail inflows across all asset classes in the past month.

On the institutional side, the underwriting syndicate, led by Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase, along with 18 other participating banks, encompasses nearly all top global investment banks. SpaceX is even negotiating to push the underwriting fee below 0.75%—still translating to roughly $500 million in commissions for the syndicate given the $75 billion raise.

For SpaceX, this is a true "seller's market." A key feature of this IPO is extreme scarcity. The 555.6 million shares on offer represent only 4.2% of the company's total outstanding shares, with the remaining 95.8% held long-term by Musk and other insiders. The company is using an all-primary share structure, meaning existing shareholders are not selling at listing, with the first lock-up expiration not occurring until after the Q2 2027 earnings release. Musk himself will face a 366-day lock-up period.

Through his holdings of Class A and Class B shares, Musk controls approximately 82.4% of SpaceX's voting power. At the $135 offer price, his stake would be valued around $866.5 billion, pushing his net worth to about $988 billion and placing him within striking distance of becoming the world's first trillionaire.



Financial Dichotomy: Starlink Profits vs. AI's Cash Burn

Beyond the narrative and valuation debate, SpaceX's financials present a stark duality, posing a significant challenge for investor valuation. According to its filing, SpaceX generated revenue of $18.7 billion for the full year 2025, up significantly from $14 billion in 2024. However, it swung from a net profit of $791 million in 2024 to a net loss of $4.94 billion in 2025. In Q1 2026, the loss widened further to approximately $4.3 billion.

Business unit performance is highly divergent. Starlink stands as the sole profitable pillar, generating Q1 2026 revenue of about $3.26 billion (69% of total revenue) and operating profit of roughly $1.19 billion. By the end of March 2026, Starlink had over 10.3 million subscribers, nearly doubling from a year prior, with close to 10,000 satellites in orbit covering 164 countries and regions. It has transformed from a high-cost experiment into a global-scale cash generator. Notably, Starlink's average revenue per user (ARPU) has fallen from $99 in 2023 to $66 in Q1 2026, a 33% drop over three years, as international expansion diluted per-user revenue with a higher mix of lower-priced markets.

The Space Launch business is strategically unprofitable, with Q1 2026 revenue of $619 million and an operating loss of $662 million. Losses from rocket launches are essentially infrastructure investments, with each launch deploying satellites for Starlink and validating Starship's reusability.

The SpaceX AI unit remains in a heavy "cash-burn" phase, reporting Q1 2026 revenue of $818 million against an operating loss of $2.469 billion. It recorded a full-year 2025 loss of $6.355 billion, with spending focused on computing power, data centers, and talent acquisition.

SpaceX plans to use IPO proceeds to expand its AI business, rocket launch capabilities, and satellite infrastructure. However, the fundraising also carries a degree of "rigid repayment" pressure—the company must use part of the debt financing and IPO proceeds within six months of listing to repay at least a portion of a $20 billion bridge loan, which was previously used to refinance high-yield junk bonds from other Musk-owned companies.

To alleviate funding pressure for the AI unit, SpaceX has signed a contract with Anthropic to provide AI computing services, valued at $1.25 billion per month. Although either party can terminate the agreement with 90 days' notice, this deal provides the company with predictable cash flow support for the coming years.



Governance Concerns: Musk's "Super Control" Raises Questions

SpaceX's IPO structure has also sparked discussions about corporate governance. The post-IPO SpaceX may not align with investors' typical understanding of a "public company." Filings show that Musk controls approximately 84.4% of the voting power through his ownership of Class B shares (10 votes per share versus 1 vote for Class A). He holds 93.6% of the Class B shares, sufficient to determine 51% of the board seats and block any resolutions aimed at removing him from leadership.

Of particular note is that Musk's equity incentive plan is tied to the Mars colonization goal. In January 2026, he was granted 1 billion performance-linked restricted shares, whose vesting conditions include not only SpaceX reaching specific market capitalization milestones but also establishing "a permanent human colony on Mars with at least 1 million residents." This means Wall Street investors' financial returns are institutionally tied to a multi-decade, multi-planetary human objective.

A non-profit consortium, the Alliance to Protect Shareholder Value, issued a statement on May 26 criticizing SpaceX's governance policies for "attempting to severely weaken shareholder protections in novel and reckless ways while granting SpaceX leadership near-total executive power." Critics argue that under this governance structure, minority shareholders have almost no checks and balances to influence the company's strategic direction.